No one should doubt the respect I have for ARM as (now that Autonomy is owned by HP) the UK’s premier tech company. Latest results for FY ending 31st Dec 11 show revenues up 21% at £491.8m, PBT up 37% at £229.7m and EPS up 33% at 12.45p. ARM has £424m in cash - £51.5m generated in Q4 alone. Finally – and eat your heart out - gross margin increased from 94.3% to 95.1%
ARM dates back to 1985 and Acorn Computers where its chips were used in the BBC Micro. Since then this Cambridge-based company has become the worlds leading designer of semiconductors. Over 15b ARM designed processors are in use in mobile phones, smartphones (Apple, Nokia, HTC, Samsung),games like the Nintendo DS, iPods, iPads, TVs etc.
ARM are not (as yet) in laptops or desktops - where Intel rules. Last week Intel declared its intention to compete with ARM on its home turf – energy efficient chips for smartphones and other portable devices. Warren East (ARM’s CEO) was asked on BBC Radio 4 Today programme whether he feared Intel. He pointed out that Intel provided ‘100s of millions’ of chips’ whereas ARM chips were shipped in many billions of devices. Actually, I think it is Intel that has more to fear as ARM moves into laptops and PCs! Indeed, ARM has the potential to be a key player in the NBT – connected TVs where ARM chips are in great demand for the new generation of set top boxes required.
East was also asked about the UK/Cambridge links. c40% of ARM employees are based in the UK. East reckons this proportion will continue. I sincerely hope so. Of course, my ‘fear’ is that ARM will go the way of Autonomy - although East has always argued that being ‘vendor agnostic’ is ARM’s main value.
A few weeks ago I was asked by intellect to produce a briefing paper and list of possible questions that Nick Robinson could use in his interview with Warren East at the Intellect Regent Conference on 9th Feb. Email Tina Compton (Tina.Compton@Intellectuk.org) if you want to book a ring side seat.,